Balkans entrepreneurship: the role of internal and external knowledge for business creation

The Balkans is a geographic region comprising a number of transition economies, which are becoming increasingly important in the international business environment. This paper uses data from the Global Entrepreneurship Monitor (2009 to 2013) to test a series of models aimed at understanding the reasons individuals start new businesses. The literature about entrepreneurship in transition economies and the role of knowledge dissemination is stated, highlighting the role of internal and external knowledge sources. The analysis indicates that in the Balkans intrinsic knowledge in the form of individual capabilities for launching an enterprise and the required skills to start a business. In addition, our analysis shows that internal and external knowledge continue to confer advantages in starting formal businesses in the Balkans region. The findings suggest that the Balkans area is growing in entrepreneurial capability and this is important for future policy directions at the European regional level and country perspective. Suggestions for future research about Balkans entrepreneurship are stated together with implications for managers and public policy planners.